Customer Order Decoupling Point

The Customer Order Decoupling Point refers to the point in the value chain of mass customization at which a customer triggers the production activities. All activities before the CODP are drive by a firm’s market research and planning department (Swamidass 2000, p. 138).This point, (also known as the freeze point, order penetration point), is the fork dividing customer-dependent and customer-independent production.

All activities at the left side of the decoupling point (Demand upstream) will start based on the forecast of the specific customer. All activities at the right side of the decoupling point (demand down stream) will start as soon as the customer order gets issued. These activities at the left side start based on the forecast of the specific customer too. Determining the CODP is a trade off between lead-time and value in the supply chain.

I think this point is very important because it will determinates how far a customer order will enter into the supply chain.  So in every company this is something essetian vbecause if  it calculates correctly, then they will save time, labor and money, there is not going to be waste of  goods and the orders and the production is going to be equitable.

Here is a video where explains the CODP more Widely.

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